Analyst Upgrades: Zumiez Inc., KLA-Tencor Corp, and Yum! Brands, Inc.

Analysts upwardly revised their ratings and price targets on Zumiez Inc. (ZUMZ), KLA-Tencor Corp (KLAC), and Yum! Brands, Inc. (YUM)

Oct 6, 2016 at 10:31 AM
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Analysts are weighing in on retail stock Zumiez Inc. (NASDAQ:ZUMZ), semiconductor equipment maker KLA-Tencor Corp (NASDAQ:KLAC), and restaurant interest Yum! Brands, Inc. (NYSE:YUM). Here's a quick roundup of today's bullish brokerage notes on ZUMZ, KLAC, and YUM.

  • ZUMZ is up 12.5% at $20.56 after the company raised its current-quarter outlook following a 6.3% increase in same-store sales for September, leading B. Riley to raise its rating on the stock to "buy" and its price target to $25 from $18. Mizuho, Suntrust Robinson, Wedbush, and Stifel also increased their price targets on Zumiez Inc., which has added 36% on the charts in 2016. Short sellers could be sweating today as the stock rallies. These bearish bets have been declining in recent months, but still represent nearly one-fourth of ZUMZ's total float. At the equity's average daily trading pace, it would take 6.5 sessions to cover all the shorted shares -- plenty of buying power to add fuel to today's fire.

  • KLAC is slipping 0.1% to $71.15 following news rival Lam Research Corporation (NASDAQ:LRCX) called off its planned $10.6 billion acquisition of the company after the U.S. Justice Department expressed antitrust concerns over the merger. Analysts were largely pleased with the news, however. B. Riley and Berenberg both raised their ratings on KLA-Tenor Corp to "buy," and the latter also offered a price-target hike to $82 from $62 -- representing record-high territory. Meanwhile, Citigroup dissented, trimming its price target to $70 from $78. KLAC has climbed 35% year-over-year, but the shares have been running into trouble at the 30-week moving average since early August. Heading into today's session, analysts were lukewarm at best toward the stock, with four out of five maintaining tepid "hold" ratings.

  • Nomura increased its price target on YUM to $108 from $96 after the company reported disappointing quarterly earnings, but raised its guidance ahead of the spin-off of its China business. The results have Yum! Brands, Inc. off 1.7% at $87.10, but the stock has enjoyed a solid year so far, adding 35% from its February lows, and is finding support once again at its rising 100-day moving average. The shares could stand to benefit from more analyst upgrades, too. Currently, more than half of the brokerage firms tracking YUM rate it a "hold" or "sell."
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